Episode 30 - Unlock the Paid Family Leave Credit - Don't Leave Money on the Table
Most contractors have never even heard of the Employer Credit for Paid Family & Medical Leave — but starting in 2026, this credit becomes permanent and gets expanded, making it one of the most valuable tax breaks available to construction businesses with employees.
In this episode, George breaks down exactly how the credit works, what’s changing, and how contractors can use it to retain good workers, offer better benefits, and cut their tax bill at the same time.
📌 Key Takeaways
✔ The IRS will reimburse you 12.5%–25% for paid family or medical leave
If you pay your crew while they take time off for:
- A new baby
- Medical recovery
- Caring for a family member
You can qualify for a federal tax credit on the wages you paid.
✔ Starting in 2026, the credit becomes PERMANENT
No more temporary extensions. No more guessing whether Congress will renew it.
It’s locked in long-term — you can plan around it.
✔ Two ways to qualify beginning in 2026
You can now claim the credit by either:
1️⃣ Paying your employees during leave (the current method), or
2️⃣ Paying premiums for a paid family leave insurance plan
This second option is huge for contractors who want benefits without large cash outflow for wages.
✔ Why contractors should care
- Helps retain good operators, foremen, and laborers
- Lets small contractors offer big-company-style benefits
- Gives you a federal tax break for taking care of your crew
- Strengthens recruiting and retention in a competitive labor market
✔ Example: How much money are we talking?
If you pay an employee $6,000 during a six-week medical recovery leave, the IRS may give you back up to $1,500 as a tax credit.
This isn’t a deduction — it’s a dollar-for-dollar credit.
Real cash savings.
🧰 What Contractors Should Do Now
To prepare for 2026:
- Draft a written paid leave policy (required to claim the credit).
- Decide between paying leave wages or using paid leave insurance.
- Train your office staff or bookkeeper on the upcoming rules.
- Use this benefit as a hiring and retention advantage.
Intro
Hook: IRS will reimburse contractors for paid leave
What the credit is
What changes in 2026
Why contractors should care
Quick tax credit example
What to do next
Outro
👷♂️ For Contractors Only
If you run a construction company and want more tax strategies for:
- Cash flow
- Payroll
- Energy credits
- Depreciation updates
- Job costing
- Entity structure
Subscribe — and drop your questions in the comments.
🔗 Connect with Me
- 🌐 com
- 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
- Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 29 - The $30k Fueling Credit Ending in 2026
If you're in construction this episode breaks down one of the most valuable, and most overlooked, tax incentives available right now: the IRS Section 30C Alternative Fuel Vehicle Refueling Property Credit.
This credit can give your business up to $30,000 per site for installing qualified EV charging or alternative-fuel infrastructure. But the clock is ticking:
⏳ It expires for property placed in service after June 30, 2026.
In this episode, we’ll cover what the credit is, who qualifies, how it works, and why now is the time to act.
- The industry is shifting: EV adoption, alternative fuels, and infrastructure demands.
- A major tax incentive is available — but only for a limited time.
- Section 30C offers 30% of installation costs, up to $30,000 per site.
- Applies to:
- EV chargers
- Natural gas fueling systems
- Propane
- Hydrogen
- Biodiesel
- Easy to claim — no lottery, no grant, no waiting.
- Deadline: June 30, 2026
- Only ~7.5 months left for most businesses to fully plan and install in time.
This credit is especially relevant for:
Contractors & Trades
- Adding chargers at yards, shops, or for service vehicles
- Meeting client demand for EV-ready builds
Fleet Operators
- Installing natural gas, propane, or electric fueling systems
- Piloting electric or alternative-fuel trucks
- Reducing long-term fuel costs
Developers
- Apartment complexes
- Industrial parks
- Retail centers
- Office buildings
- Logistics hubs
- Adding infrastructure now = huge future value + federal subsidy
You get:
- 30% of total installation cost
- Up to $30,000 per site
- Covers:
- Equipment
- Electrical upgrades
- Trenching
- Labor
- Engineering
- Permitting
- Site prep
Plus, it can stack with:
- State incentives
- Utility company rebates
- IRA programs
- Bonus depreciation + MACRS
A $100,000 installation may effectively cost $30,000–$40,000 after all benefits.
For the IRS, “placed in service” means:
- Fully installed
- Functional
- Inspected
- Energized
- Ready for use
Not simply purchased.
Typical timelines:
- Planning/design: 60–90 days
- Equipment lead time: 30–90 days
- Installation: weeks to months
- Utility approval: unpredictable
Translation: If you start late, you may miss the credit entirely. Start now.
A $100,000 EV charging install might get:
- $30,000 federal credit
- $10,000–$50,000 in state incentives
- $5,000–$40,000 in utility rebates
- Significant depreciation write-offs
Net cost could drop to $20,000–$40,000.
Multiple sites = multiple $30k credits.
Step 1: Assess your charging or fueling needs
Step 2: Get a site evaluation
Step 3: Collect a full cost estimate
Step 4: Confirm eligibility with a tax professional
Step 5: Begin installation early and avoid last-minute delays
The industry is evolving fast. Businesses that prepare now will be ahead.
Don’t wait until incentives disappear and costs rise. The window is closing.
Need help calculating savings, modeling your project ROI, or confirming eligibility?
Reach out — getting this right could return tens of thousands to your business.
Don’t leave free money on the table. Start planning now.
🔑 Key Takeaways
- Up to $30,000 per site for EV/alt-fuel infrastructure
- Stacks with state & utility incentives
- Deadline: June 30, 2026
- Planning needs to start ASAP
- Huge opportunity for contractors, fleets, and developers
Episode 28 - The Contractor's Guide to the 20% Write-off
If you own a construction business — S corp, LLC, or sole proprietorship — this episode could save you tens of thousands in taxes.
We break down the Section 199A 20% pass-through deduction, how it works, when it phases out, and three year-end moves that can help you lock in the full deduction before December 31, 2025.
The Section 199A deduction is now permanent under the new tax bill — but the benefit starts to phase out once your taxable income passes:
Filing Status | Phase-Out Begins | Fully Phased Out |
Single / Head of Household | $197,300 | $247,300 |
Married Filing Jointly | $394,600 | $494,600 |
💡 The phase-out range is $50,000 for single filers and $100,000 for married filers.
If you’re over those limits, your deduction can shrink fast — or disappear entirely (depending on your business type).
Key Points
- The Section 199A 20% deduction is now permanent — but not guaranteed for everyone.
- If your 2025 taxable income exceeds $197,300 (single) or $394,600 (married), your deduction starts to phase out.
- George explains what this means and why contractors need to act before year-end.
⚒️ Move #1: Harvest Capital Losses
- Selling property or investments for a gain can push your income over the 199A limit.
- Strategy: Sell losing investments before December 31 to offset those gains.
- ✅ Example: A contractor dropped taxable income below the limit and doubled their 199A deduction (from ~$10,900 to $20,000) by harvesting $40,000 in losses.
- Bottom line: Smart timing on investment sales can save thousands in taxes.
💸 Move #2: Make Charitable Contributions
- Charitable giving lowers your taxable income — and may restore your full 20% deduction.
- Give smarter:
- Donate appreciated stock instead of cash to avoid capital gains.
- Prepay 2026 charitable gifts before December 31, 2025.
- ✅ Example: A $40K donation in appreciated stock reduced taxable income and increased the 199A deduction — for $13,595 in total savings.
- Tip: Combine tax planning with generosity — and get a double benefit.
🚛 Move #3: Buy Business Assets Before Year-End
- Use bonus depreciation or Section 179 expensing to fully write off new equipment, trucks, or tools.
- These deductions can drop you below the 199A threshold while refreshing your business assets.
- ✅ Example: A contractor over the income limit bought $50K in new equipment and saved nearly $24,000 in total taxes.
- Pro tip: Equipment must be purchased and placed in service before December 31, 2025 to count.
📊 Summary
Key takeaways:
- The 20% deduction under Section 199A is permanent — but income limits still apply.
- Stay under $197K / $394K in taxable income to keep it.
- Before December 31, 2025, consider:
- Harvesting capital losses
- Making charitable contributions
- Buying and placing equipment in service
These moves can restore or increase your 199A deduction and save thousands.
🎯 Outro & Call to Action
- Like 👍 the video if you found it helpful.
- Subscribe for more contractor tax strategies and small business planning tips.
- Comment if you want a follow-up video on how to calculate your 199A deduction step-by-step.
- “Smart contractors build wealth not just on the job site, but on the balance sheet too.” 💪
📚 Resources Mentioned
- IRS Section 199A Overview: irs.gov/qualified-business-income-deduction
- IRS Publication 535: Business Expenses (for depreciation & 179 details)
- Charitable Stock Donation Guide (Fidelity or Schwab)
- Section 179 Calculator: section179.org
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Episode 27 - How Contractors are Avoiding Capital Gains Taxes
If you’re a contractor, builder, or developer sitting on appreciated real estate, equipment, or land — this episode is a must-watch.
We break down how you can legally eliminate capital gains taxes on your next project using the newly revived Opportunity Zone program (thanks to the OBBBA).
Learn how to sell appreciated assets, reinvest through a Qualified Opportunity Fund (QOF), and build projects that grow tax-free — all while revitalizing communities and keeping more of your hard-earned money.
Whether you’re flipping properties, developing multi-family projects, or breaking ground in rural areas, the new 2027 “QOZ 2.0” rules could unlock one of the biggest wealth-building opportunities for contractors in decades.
🧱 What You’ll Learn
- How to turn capital gains into tax-free investments
- Step-by-step: selling appreciated assets and reinvesting within 180 days
- What a Qualified Opportunity Fund (QOF) is and how to use it
- How the new 2027 Opportunity Zone rules change the game
- The huge tax perks for rural builders under QROFs
- How to structure your next deal to maximize tax efficiency and growth
📅 Episode Breakdown
The new way contractors can avoid capital gains taxes
Selling appreciated assets the smart way
How investing through a QOF turns taxes into equity
What’s changing in 2027 (QOZ 2.0 explained)
Big breaks for rural builders (QROFs)
How to make your next project 100% tax-free
💡 Key Takeaway
These aren’t loopholes — they’re IRS-approved incentives designed to reward builders who invest in America’s communities.
With the right timing and structure, you can build wealth, cut taxes, and create long-term impact — all in one move.
🧰 Resources Mentioned
- IRS Qualified Opportunity Zones Program
- 2027 “QOZ 2.0” expansion under the One Big Beautiful Bill (OBBBA)
- Qualified Rural Opportunity Funds (QROFs)
🧠 For Contractors Who Want More
If you’re planning a sale, new build, or major reinvestment — now’s the time to talk strategy.
👉 Subscribe for more episodes on tax-efficient construction investing, and let’s build something smarter together.
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Episode 26 - Pay Yourself Tax-Free: The Accountable Plan Every Contractor Needs
🎥 How Contractors Can Pay Themselves Tax-Free: Setting Up an Accountable Plan
💬 Description
Are you paying for business expenses out of pocket — gas, home office, phone, travel — without reimbursing yourself the right way? In this video, I'll show you exactly how to create and implement an Accountable Plan so you can reimburse yourself tax-free and reduce your business's taxable income.
By the end of this video, you'll know how to: ✅ Write a compliant accountable plan policy ✅ Reimburse yourself legally and tax-free ✅ Avoid IRS red flags ✅ Keep clean, audit-ready records ✅ Automate reimbursements for your contractor or S corp business
Why accountable plans save you serious tax money
What Is an Accountable Plan? How reimbursements work tax-free
Who Needs an Accountable Plan? Contractors, S-corps, and small business owners
How To Implement One: Step-by-step setup
Real-World Example: Reimbursing mileage and expenses
Common Mistakes: What to avoid with the IRS
Automate & Stay Compliant: Tools and pro tips
Outro & Free Template: Take action and get your plan started
🧾 Free Download
🎁 Grab your free Accountable Plan Template here: 👉 https://accountingsolutionsllp.com/accountable-plan/
Use this to set up your own compliant plan today — it's simple, IRS-approved, and 100% legal.
🧮 What You'll Learn
How to pay yourself back tax-free
How accountable plans work for S-Corps and contractors
What expenses you can reimburse (home office, mileage, phone, tools, etc.)
How to write your own policy and track expenses
Mistakes that trigger IRS scrutiny
The best apps and software for automation
⚠️ Avoid These Mistakes
🚫 Paying lump sums without receipts 🚫 Forgetting to return excess reimbursements 🚫 Mixing personal and business expenses 🚫 Not documenting purpose, date, or mileage
💼 Pro Tips
Use apps like MileIQ or Everlance for mileage tracking
Use QuickBooks Online, Gusto, or Google Sheets for reimbursements
Store your written plan and receipts digitally (Google Drive, Dropbox, etc.)
Review your plan annually for compliance
🔗 Connect with Me
🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 25 - How Contractors Can Maximize 2025 Vehicle Deductions
Episode Summary
In this episode, George breaks down the One Big Beautiful Bill Act (OBBBA) and how it creates massive new write-off opportunities for contractors, builders, and tradespeople in 2025. Learn how the timing of your vehicle purchase, the type of vehicle you buy, and even one business mile before year-end can mean tens of thousands in tax savings.
George introduces the OBBBA and how it changes vehicle write-offs for 2025.
How contractors can use business vehicles as powerful tax deduction tools — including full write-offs on new or used vehicles placed in service by December 31, 2025.
The two critical requirements to qualify before year-end: own the vehicle and drive at least one business mile before midnight on December 31.
The sweet spot for tax savings. Trucks and SUVs with GVWR >6,000 lbs can qualify for 100% bonus depreciation or Section 179 expensing.
How heavy pickups and cargo/passenger vans qualify for full deductions up to $2.5 million. Examples of what counts, what doesn't, and how to stay compliant.
Why light-duty vehicles under 6,000 lbs hit depreciation caps — and how to avoid wasting deduction potential.
OBBBA ends EV credits after September 30, 2025 — why traditional gas or diesel vehicles may now be the smarter move for contractors.
George's CPA checklist for locking in your deduction: confirm with your accountant, verify GVWR, take delivery, drive once, and document everything.
Final recap and a call to action — buy before year-end, go heavy, and make the tax code work for your business.
Key Takeaways
- 100% deduction possible on qualifying heavy vehicles placed in service by Dec 31, 2025 - Lighter vehicles face strict IRS depreciation limits - Section 179 expensing and bonus depreciation still apply under OBBBA - EV tax credits end September 2025 - Documentation and timing are everything
🔗 Connect with Me
🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 24 - S-Corp Election
🔹 What You'll Learn
What an S-Corporation actually is (and what it's not)
How to save thousands in self-employment taxes as a contractor
Step-by-step walkthrough of IRS Form 2553
When and how to file (and what to do if you missed the deadline)
George introduces the benefits of electing S-Corp status and who it's right for (contractors earning $80K–$100K+).
Learn how S-Corp status helps reduce self-employment taxes by splitting income into salary and distributions.
Timing rules for new and existing businesses — and how to qualify for late election relief.
Detailed line-by-line guide using "Ghazarian Construction LLC" as an example:
Business info, EIN, and formation details
Shareholder section (including how to fill if you're the only owner)
Fiscal year selection
Late election relief explanation
Signing and officer details
Where to send or fax your completed Form 2553 and what confirmation notice to expect (IRS CP261).
Next steps after S-Corp approval — payroll setup, quarterly filings, and how Accounting Solutions LLP can help.
💼 Resources Mentioned
IRS Form 2553: https://www.irs.gov/forms-pubs/about-form-2553
IRS Form 2553 Instructions: https://www.irs.gov/instructions/i2553
IRS Rev. Proc. 2013-30 (Late Election Relief): https://www.irs.gov/pub/irs-drop/rp-13-30.pdf
🔗 Connect with Me
🌐 accountingsolutionsllp.com
💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 23 - 2025 Best Project Management Software
George opens with a powerful truth — most contractors lose profit not from poor craftsmanship, but poor project management. He sets the stage for why modern construction businesses must get serious about software systems that organize chaos and improve margins.
Key takeaway: ➡️ The right project management software turns your jobs from reactive to proactive.
Construction projects juggle endless moving parts: labor, materials, RFIs, inspections, change orders, and documentation. Without structured tools, things fall through the cracks. George explains how software gives visibility, control, and automation — transforming chaos into predictable profits.
Key takeaway: ➡️ If you're still running jobs from email or spreadsheets, you're choosing chaos.
Summary: George outlines 5 essential capabilities every construction PM tool should have:
Document & drawing control
Task & schedule management
Change-order & cost tracking
Mobile/field access
Collaboration & reporting
He stresses the importance of field testing before rolling out company-wide.
Key takeaway: ➡️ Your software is only as good as its adoption in the field.
1. Procore — Best Overall ✅ Full-featured, field-to-office collaboration, excellent support ⚠️ Higher cost, learning curve Best for: mid-size to large GCs
2. Buildertrend — Best for Home Builders & Remodelers ✅ Strong client portals, scheduling, selections ⚠️ Not ideal for large commercial jobs Best for: residential/remodel contractors
3. Autodesk Build (Autodesk Construction Cloud) — Best for BIM & Complex Projects ✅ Excellent for design-build and enterprise-level teams ⚠️ Costly, requires training Best for: commercial, design-build firms
4. Houzz Pro — Best for Remodelers ✅ Client communication, estimating, selection tools ⚠️ Lacks depth for commercial GCs Best for: small-scale, renovation-focused firms
5. ServiceTitan — Best for Hybrid Construction + Field Service ✅ Great for job costing, scheduling, mobile integration ⚠️ Costly, complex onboarding Best for: contractors combining service + construction operations
Key takeaway: ➡️ Choose software that fits your business model, not just one with the most features.
George shares a framework for evaluating tools:
Match software to your company size & complexity.
Prioritize integration with accounting & field tools.
Balance budget vs. ROI.
Run pilot projects before scaling.
Focus on value outcomes — fewer errors, faster closeouts, higher margins.
Embrace change management — process improvement matters as much as the tech.
➡️ Software doesn't fix chaos — systems and accountability do.
Recommended Action Plan:
Pick 2–3 tools and schedule demos this week.
Identify your top pain points.
Ask vendors directly how they'll solve them.
Assign a software champion (PM or foreman).
Roll out on one project — commit 100%.
After 90 days, measure results: fewer errors, faster delivery, clearer job costs.
Episode 22 - Offers: Scaling Your Business Part 3
In this episode of the Scaling Series for Construction Business Owners, George breaks down one of the biggest profit-killers in the trades: weak offers. You'll see how two contractors — running the same ad with the same budget — can get 22x different results simply because one used a "Strong Offer" while the other sounded like every other roofer on Google.
What You'll Learn
The Difference Between a Commodity and a Strong Offer
Why "Free Estimates" make you blend in with the crowd
How a single irresistible offer can separate you from every competitor
The Real Numbers Behind Offer Power
$10,000 ad spend, identical reach — and yet one contractor makes $70,000
Why response rate, close rate, and ROAS all multiply when your offer hits right
The Psychology Behind Why Offers Win
Buyers crave certainty, not features
The three elements every winning offer includes:
Risk reversal
Value stacking
Urgency
4. How to Build Your Own Strong Offer
Add a "value bomb" (bonus, upgrade, or freebie)
Guarantee results (remove the customer's risk)
Add urgency (scarcity, deadline, or incentive)
Example: "Book before Dec 15th and get free gutter guards + a lifetime leak warranty."
Real Results Breakdown
Key Takeaway
Don't scale bad math. If your offer doesn't grab attention and crush risk, no amount of ad spend will save it. A Strong Offer is how you stop competing on price and start scaling on value.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 21 - Tax Strategy Quick Wins
Before 2025 closes, there are powerful — and totally legal — tax strategies contractors can use to save thousands. In this episode, George breaks down six smart year-end moves that help builders, tradespeople, and small business owners keep more of their hard-earned money.
No fluff, no loopholes — just proven IRS-approved tactics that work.
What You'll Learn
Prepay Expenses Using IRS Safe Harbor Deduct up to 12 months of next year's expenses — rent, insurance, and leases — right now.
Stop Billing Until January Delay sending invoices to legally defer income into 2026.
Buy and Place Equipment in Service Before December 31 Use Section 179 and bonus depreciation to instantly write off tools, trucks, and tech.
Use Your Credit Cards Strategically Learn when a credit card swipe counts as an immediate deduction.
Claim Every Legitimate Deduction Why "too many deductions" is a myth — and how Net Operating Losses can help you later.
Leverage Qualified Improvement Property (QIP) Maximize write-offs for interior improvements like HVAC, lighting, and drywall.
Quick Recap
Prepay 2026 expenses now
Hold off December billing
Buy and use new equipment before Dec 31
Swipe your business card before year-end
Take all legit deductions
Use QIP rules for interior improvements
Ideal For
General Contractors
Subcontractors
Builders & Remodelers
Trade Business Owners (HVAC, Plumbing, Electrical, etc.)
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 20 - R&D Tax Credits for Construction
Summary
R&D Tax Credits for Construction
George and Anselmo discussed the applicability of R&D tax credits to construction companies, with Anselmo explaining that construction is one of the most innovative industries, involving technical problem-solving on job sites rather than in labs. Anselmo clarified that R&D tax credits are not limited to scientific industries and can apply to various trades, including HVAC, electrical, and plumbing, when companies are developing or improving methods or materials. He advised contractors to document their R&D activities through project files, CAD designs, change orders, job costing, payroll records, and other relevant data to demonstrate technical decision-making and problem-solving processes to the IRS.
R&D Documentation for Tax Benefits
George and Anselmo discussed the documentation and tracking processes for R&D activities to qualify for tax benefits. Anselmo explained that companies should document their R&D efforts through methods like job codes, Excel sheets, or notes, and emphasized the importance of clear communication with respect to IRS compliant documentation. He noted that while the first year of tracking can be challenging, processes often improve over time with better organization and involvement of project managers and company leaders. Anselmo also highlighted that companies can apply for the R&D program for the current year and the past three years, making it crucial to maintain accurate records.
R&D Tax Credits for Construction
George and Anselmo discussed tax credits for construction companies. Anselmo explained that for every $100,000 of qualifying R&D expenditures, companies can receive approximately 20% in credits between federal and California programs. This includes 15% on salaries and 25% on material expenses. They can claim credits for up to three previous years and the current year, with the ability to amend returns for 2022-2024 and file for 2025 the following year.
Construction Tax Credits Overview
George and Anselmo discussed various tax credits available to construction companies, with the R&D credit being the most significant. Anselmo explained that companies can claim the R&D credit for up to three years after filing, and it is available for both federal and California taxes. They also covered other credits like the 179D for energy-efficient buildings, Work Opportunity Tax Credits, and Section 179 expensing. George emphasized the importance of consulting industry-specific experts for R&D credits, as some tax firms specialize in certain industries. Anselmo shared his experience working with small businesses and explained the Tech Clean California program, which provides rebates for energy-efficient retrofits in California.
Understanding R&D Tax Credits
George and Anselmo discussed utility credits, focusing on New York's tax credit program for high electricity users, which is not available in California. Anselmo explained the qualification process, emphasizing that contractors should not assume they do not qualify for R&D tax credits. He advised listeners to contact URC Refunds for a free 10-15 minute qualification call, and highlighted that the company only gets paid when clients receive approved tax credits.
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Episode 19 - Augusta Rule
If you own a construction company, you're probably paying more in taxes than you need to. In this episode, George Ghazarian, CPA and construction industry tax strategist, breaks down the Augusta Rule — a powerful, 100% legal tax strategy that can save business owners thousands of dollars each year.
You'll learn how to use this rule to rent your personal home to your business for meetings, training sessions, or strategy retreats — and receive that income tax-free.
Stay until the end for a real-life case study showing how one contractor saved over $10,000 just by applying this strategy correctly.
Episode Breakdown
Origin story from Augusta, Georgia, and the IRS provision that lets homeowners rent their home for 14 days or less tax-free.
How S-corp and LLC owners can rent their homes to their own companies for legitimate business events — saving thousands annually.
The five compliance steps you must follow to make it fully IRS-proof:
Document fair market rent
Use a written rental agreement
Have a real business purpose
Pay yourself via business check
Skip the 1099 (under 15 days)
Common pitfalls that can ruin the deduction — fake meetings, inflated rent, poor documentation, or exceeding 14 days.
Why every construction business owner should talk to their CPA about this strategy before year-end.
Key Takeaways
The Augusta Rule (IRC §280A(g)) lets you rent your personal home tax-free for up to 14 days per year.
Your business can deduct the rent if it's for legitimate business purposes.
Proper documentation and fair rental rates are essential for IRS compliance.
Can easily save $3,000–$10,000+ per year in taxes.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 18 - The Secret IRS Rule that Instantly Deletes Tax Penalties
Missed your 2025 estimated tax payments? Don't panic — there's a legal, IRS-approved strategy that can erase those underpayment penalties almost instantly. In this video, George breaks down how to use a 60-day retirement account rollover to make your tax penalties disappear — while staying 100% compliant.
What You'll Learn
Why the IRS underpayment penalty rate (currently 7% compounded daily) hurts more than you think.
How to use a 60-day IRA or 401(k) rollover to retroactively fix missed estimated tax payments.
Why withholding is treated differently from estimated payments — and how that helps you "time-travel" your taxes.
Common mistakes to avoid with this strategy (like missing the 60-day rule or doing multiple rollovers).
A bonus tip for seniors using RMDs to eliminate year-end penalties.
Important Notes
The 60-day redeposit rule is strict — miss it and your withdrawal becomes taxable.
You can only do one 60-day rollover per 12 months per taxpayer.
Always use direct withholding through your retirement custodian — don't send payments manually.
This strategy is fully IRS-compliant, but consult your CPA before taking action.
Resources Utilized
IRS Topic No. 306: Estimated Tax Penalty Rules
IRS Publication 505: Tax Withholding and Estimated Tax
IRS Form 2210: Underpayment of Estimated Tax by Individuals
🔗 Connect with Me
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Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 17 - Want to Grow Your Construction Company Faster? Try This.
In this episode, George breaks down exactly how contractors can grow their businesses by stepping into government contracting — one of the most stable, lucrative, and scalable areas in construction. You'll learn what agencies look for, where to find verified bid opportunities, and how to position your company for long-term, recession-proof success.
What You'll Learn
Why Government Contracting Changes the Game
Why public projects are more predictable and stable than private jobs
How to leverage steady cash flow and reliable payments
Why "once you're in, you're in" with public agencies
What Government Agencies Look For
Licensing, bonding, and financial documentation essentials
How to register as a vendor and build a reputation through smaller jobs
How to Get Started – With Verified Portals
George shares verified links for bidding in San Francisco, Los Angeles, and Orange County, including official registration portals and pro tips for each region. See https://accountingsolutionsllp.com/procurement/
🔹 San Francisco Region
SF Department of Public Works – (see link above)
SFPUC – (see link above)
SF Office of Contract Administration – (see link above)
🔹 Los Angeles Region
RAMP (Regional Alliance Marketplace) – (see link above)
LA City Bureau of Engineering – (see link above)
LA County Open Solicitations – (see link above)
BidExpress – (see link above)
🔹 Orange County Region
Periscope S2G – (see link above)
OC Public Works – (see link above)
City of Irvine – (see link above)
OCTA – (see link above)
OC Sanitation District – (see link above)
Pro Tips & Mistakes to Avoid
Start small — build credibility with smaller contracts first
Keep financials and compliance airtight
Attend procurement workshops to get on preferred vendor lists
Consistent bidders can grow from $1M → $10M+ in just a few years
Bonus Resource
See https://accountingsolutionsllp.com/procurement/
Related Topic: What to Look for in a CPA Firm for Construction Companies
If you're serious about scaling through public work, make sure your CPA firm checks these boxes:
Construction-specific job costing & WIP reporting
Tax strategy under §460 and multi-entity optimization
Certified payroll & prevailing wage compliance
Bonding-ready financials
Proactive advisory and industry tech integration
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 16 - Top 10 Mistakes Contractors Make
Most construction firms overpay the IRS — not because of bad business, but because of poor tax strategy. In this episode, we reveal 10 powerful ways to legally save $50,000 or more in taxes each year by optimizing deductions, improving reporting, and tightening financial systems.
From Section 179 write-offs to R&D tax credits and WIP reports, these tactics are proven and practical for contractors who want to build smarter — not just harder.
#1 – Leverage Section 179 Deductions
Write off heavy equipment and tools immediately
Turn big purchases into instant tax savings
#2 – Implement Job Costing Software
Track labor, materials, and fuel costs by project
Reveal hidden deductions and stop the guessing game
#3 – Utilize the R&D Tax Credit
Qualify for credits when testing materials or new methods
Turn innovation into real money back
#4 – Master the Percentage of Completion Method
Recognize income as work is completed
Smooth out tax payments and improve cash flow
#5 – Create a Tax Buffer Fund
Set aside 10% of revenue for tax surprises
Stay calm and prepared when April hits
#6 – Optimize Work-In-Progress Reporting (WIP)
Forecast revenue and detect overbillings early
Avoid year-end tax shocks with proactive reporting
#7 – Consult a Construction Tax Specialist
Why industry expertise matters
Get specialized insights that generic accountants miss
#8 – Separate Business and Personal Expenses
Protect deductions and avoid IRS red flags
Keep clean records with separate accounts and receipts
#9 – Conduct Mid-Year Tax Reviews
Check in twice a year to adjust strategies
Lock in savings before deadlines
#10 – Automate Payroll with Tax Compliance Software
Reduce errors and penalties
Save time while staying audit-proof
Closing & Call-to-Action
Summary: 10-step blueprint to save $50K+ annually
Call-to-action: Like, Subscribe, and Download our Free Construction Tax Checklist
Key Takeaways
Tax strategy = profit strategy
Smart accounting systems create cash flow
Don't wait for year-end — plan mid-year
Hire pros who know construction
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 15 - Should You Buy Your Truck Under Your Business or Personal
In this episode of Concrete #s, host George Ghazarian breaks down one of the most confusing tax questions contractors face — "Should I buy my truck under my business or in my personal name?"
It's a simple decision that can save (or cost) you tens of thousands in taxes. George walks you through Section 179, Bonus Depreciation, IRS rules for business use, and the 50% and 80% thresholds that every contractor should know before signing those dealership papers.
Key Topics Covered
Part 1: Why This Decision Actually Matters
The IRS doesn't care what's on the title — only how you use the truck.
Your vehicle might be both a business tool and a personal ride.
Usage determines deductions, not ownership.
Part 2: Option 1 — Buying It Under the Business
Pros
Deduct loan payments, fuel, insurance, maintenance, and depreciation.
Eligible for Section 179 and Bonus Depreciation if used >50% for business.
Clean bookkeeping when everything runs through the business.
Cons
Personal use becomes a taxable fringe benefit.
Higher insurance and registration in some cases.
Drop below 50% business use → lose Section 179 eligibility and must recapture depreciation.
Part 3: Option 2 — Keeping It in Your Personal Name
Pros
Still deductible via mileage (70¢/mile 2025) or actual expense method.
Avoids fringe-benefit taxation.
Simpler personal use rules.
Cons
Must track business miles meticulously — no log, no deduction.
Less aggressive depreciation potential.
Part 4: The 80/20 Rule — The Decision Point
80%+ business use → title it under the business (best for dedicated work trucks).
Mixed personal use → keep it personal, use mileage/actual expense method.
<50% business use → not eligible for Section 179 or Bonus Depreciation.
Part 5: Documentation — The Real Key
Keep receipts, insurance, maintenance records, and mileage logs.
If owned by the business, make payments from the business account only.
The IRS cares about records, not intentions.
Part 7: Closing
If it's your jobsite workhorse, put it under the business. If it's your weekend hauler, keep it personal.
Remember:
50% business use = Section 179 eligible.
< 50% = no deduction recapture risk.
80% = slam dunk for full business ownership.
Keep your foundations solid, your records tight, and your numbers — concrete.
Key Takeaways
-Section 179 & Bonus require > 50% business use. -IRS mileage rate for 2025 = 70 ¢/mile. -Documentation > deductions. -Don't chase write-offs at the expense of compliance.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 14 - Contractor or Employee
In this episode of Concrete #s, host George Ghazarian exposes one of the most costly mistakes contractors make — misclassifying workers as independent contractors instead of employees.
What starts as a shortcut to "keep things simple" can end in six-figure penalties from the IRS, EDD, and FTB. George breaks down how misclassification happens, how California's ABC Test and the IRS's Common Law Test work, and what you can do to protect your business from audits, penalties, and financial disaster.
Key Topics Covered
Part 1: The Reality — Misclassification Is an Audit Magnet
Why 1099 "shortcuts" backfire in construction.
Common triggers for EDD and IRS investigations.
How a small oversight can lead to $50K–$150K in back taxes and penalties.
Part 2: California's ABC Test (AB5 & Dynamex)
The three-part rule:
A: Freedom from control.
B: Work outside your core business.
C: Independent trade or business.
What makes most field workers "employees," not contractors.
Part 3: The IRS Common Law Test
The federal version of worker classification.
Three key factors: Behavioral control, Financial control, and Relationship type.
When "looks like an employee" = "is an employee."
Part 4: The Fading Safe Harbor (Section 530)
The old "reasonable basis" rule — and why it's no longer reliable.
How IRS enforcement is tightening on misclassification defenses.
Part 5: Protecting Your Business
Practical steps to reduce risk:
Use written subcontractor agreements.
Verify insurance and licenses.
Pay by project, not by the hour.
Ensure subs have multiple clients.
Keep documentation to prove independence.
Part 6: Real-World Examples
Jose: hourly concrete laborer using your tools — employee.
ABC Concrete Finishing: licensed sub with crew, insurance, and multiple clients — legitimate contractor.
Part 7: The Bottom Line
Misclassification is a shortcut straight off a cliff.
Once the audit starts, it's no longer about saving taxes — it's about survival.
Takeaways
Misclassification = one of the top audit triggers in construction. California's ABC Test is tough — fail any part, and it's employment. Documentation, contracts, and clear independence are your best defense. Don't wait for an audit to clean it up.
Listen Now
Protect your business, your people, and your bottom line — before a $100,000 mistake hits your mailbox.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 13 - QSub 101: The Smartest Move You've Never Heard Of
In this episode of Concrete #s, George breaks down one of the most underused — yet incredibly powerful — strategies for growing construction companies: the Qualified Subchapter S Subsidiary, or QSub.
If you're running your business as an S corporation and thinking about adding new divisions, rental operations, or development projects, this episode explains how QSubs can give you maximum liability protection without creating multiple tax returns or unnecessary complexity.
Key Segments
The Problem — Growth Brings Risk
As your construction business expands, so does your exposure. Multiple job sites, divisions, and rental operations all carry unique risks. Setting up multiple LLCs or corporations can protect you — but it also creates administrative and tax headaches. Enter the QSub: the balance between protection and simplicity.
The Solution — What a QSub Actually Is
A QSub is a corporation owned 100% by your main S corporation.
Legally: It's its own entity — can own property, hire employees, open accounts, and even get sued separately.
For taxes: The IRS treats it as part of the parent S corp. One S corp return. One K-1 per shareholder. No extra filings.
The Benefits — Why Construction Owners Love It
Risk Protection Without Complexity
Separate liability between business lines or job sites.
One division's lawsuit or loss doesn't touch the others.
Simplicity at Tax Time
One Form 1120-S, one return.
No messy consolidations or double accounting.
Flexibility for Growth
Create QSubs for new job sites, equipment rentals, real estate projects, or different trades.
Move assets between your S corp and QSubs tax-free — because they're one entity in the IRS's eyes.
The Process — How to Set One Up
Your S corp owns 100% of another corporation.
File Form 8869 with the IRS to elect QSub status.
Once approved, that subsidiary is part of your parent company for taxes — but still its own legal entity for liability. Simple setup, big payoff.
Real-World Example
Example: Concrete Kings S Corp creates Concrete Kings Development Inc. as a QSub.
The QSub manages land and development projects.
The parent company keeps doing construction work. If the development arm gets sued, the main business is protected — but everything still rolls into one tax return. Legal separation, tax unity.
When a QSub Makes Sense
Perfect for construction owners who are:
Running multiple job sites or divisions.
Getting into real estate development or equipment rentals.
Holding assets (like trucks or heavy machinery) separately.
Expanding geographically but want centralized control and taxes.
If you're scaling fast, it's time to have the QSub talk with your CPA.
TL;DR Recap
A QSub = 100%-owned subsidiary of an S corp.
Separate legal entity, unified for taxes.
One return, one K-1.
Transfer assets tax-free between entities.
Protect each division — without multiplying paperwork.
One parent. Many subs. One return. Maximum protection.
Takeaway
QSubs let construction owners grow smart — not messy. They offer legal separation and protection across multiple business lines, without adding new tax filings or complexity. It's the most underrated structure in the S corp playbook.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 12 - Start-Up Costs
Episode Summary
In this episode of Concrete #s, George dives into a real U.S. Tax Court case — Kwaku Eason and Ashley L. Leisner v. Commissioner (Tax Court Summary Opinion 2024-17) — where two entrepreneurs lost $40,000 in deductions because the IRS ruled their business hadn't officially begun.
George breaks down how to determine your true business start date, what the IRS looks for, and how to protect your deductions with the right documentation and planning.
Key Segments
1. The Setup — $40,000 Gone Wrong
Two business owners invested heavily in education, training, and startup costs. They formed their LLC and deducted everything — only to have the IRS disallow every dollar, claiming the business hadn't started operating yet.
2. The Lesson — When Does a Business Actually Start?
Forming an entity doesn't automatically mean your business has started. According to the IRS, operations begin when you start actively doing business, not just preparing for it.
Pre-start activities: Training, setting up systems, forming the entity.
Operational activities: Marketing, bidding jobs, signing contracts, earning income.
Your deductions count once you cross that operational line.
3. The Smart Move — Track Your Timeline
Keep detailed records of when you began operations:
First day you marketed or advertised
First bid or proposal submitted
First client signed
First payment received
This documentation can make or break your case if the IRS ever challenges your deductions.
4. The Good News — Startup Expense Deductions
Even if your business hasn't officially started, you don't lose everything:
Deduct up to $5,000 of startup costs in the first year
Amortize (spread) the remaining amount over 15 years
Example: $40,000 in startup costs → $5,000 deducted now, about $2,300 per year over the next 15 years.
5. Real-World Construction Example
If you're a contractor launching a new division or side business — say, concrete restoration — your startup expenses (tools, insurance, training) count only after operations begin. Once you start marketing or signing contracts, that's your official start date.
6. The Takeaway — Timing Is Everything
When your business starts isn't just a date — it's a tax event. Plan it, document it, and talk to your CPA before spending big. A quick conversation could save you tens of thousands in denied deductions.
Episode Highlights
Your business "starts" when you begin operations, not when you file paperwork.
Track your timeline and keep proof of activity.
Startup costs can still be deducted — just differently.
One smart planning meeting with your CPA can prevent huge losses.
Case Reference
Kwaku Eason and Ashley L. Leisner v. Commissioner, Tax Court Summary Opinion 2024-17
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 11 - How to Sell Your Construction Business Tax-Free
If you own a construction company and plan to sell in the next 3–5 years, this episode could literally save you millions.
George breaks down what he calls "the mother of all tax strategies" — the Qualified Small Business Stock (QSBS) exclusion under Section 1202 of the Internal Revenue Code. This powerful (and often overlooked) tax rule lets you potentially sell your construction company completely tax-free — up to $15 million of gain.
In This Episode
You'll learn:
💡 What QSBS is — and how it allows qualified business owners to sell stock tax-free.
How the $15 million exclusion works and how to qualify under Section 1202.
Why most construction companies miss out by staying as S corps — and how to fix it.
The 3-, 4-, and 5-year rules for partial and full QSBS exclusions under the Opportunity to Build Back Better Act (OBBBA).
A real-world example: how converting from an S corp to a C corp in 2025 could save you millions when you sell in 2030.
Key requirements to qualify:
Be a domestic C corporation
Acquire stock through original issuance
Pass the 80 percent active-business test
Have less than $50 million in gross assets at issuance
The math: what your tax bill looks like with and without QSBS.
Strategic takeaways: why planning early and structuring properly matters if you're targeting an exit.
Key Takeaway
The Qualified Small Business Stock exclusion is the single most powerful exit-planning tool for construction business owners who want to keep their hard-earned gains. Plan early, structure smart, and you could legally sell your business with little to no federal capital-gains tax.
Quick Disclaimer
QSBS rules are highly technical. Always consult your CPA or tax attorney before restructuring your entity or issuing new shares. (Also note: California does not conform to the federal QSBS exclusion, so state taxes may still apply.)
Resources Mentioned
IRC Section 1202 – Qualified Small Business Stock (QSBS)
Opportunity to Build Back Better Act (OBBBA) – updates creating partial 3-/4-/5-year exclusions
IRS Publication 550 – Investment Income and Expenses (capital-gains reference)
For Construction Business Owners
Thinking about selling your company in the next few years? Start planning now. A simple entity conversion and timing strategy could mean the difference between writing a seven-figure check to the IRS or keeping it in your pocket.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 10 - Scale Your Construction Business (Part I)
In this episode of Concrete #s, host George Ghazarian, CPA for Contractors, dives into the difference between growing and scaling your construction business. Drawing from Dr. Benjamin Hardy's book The Science of Scaling, George explains why so many contractors stall out with incremental growth — and how to break through using Hardy's Frame, Floor, Focus framework.
Most contractors grow linearly — 10–15% per year — and eventually stall.
Linear growth = doing more of the same, not creating leverage.
To truly scale, you need systems that work without you on every jobsite.
Frame – Set "impossible" goals that force new thinking.
Example: "Double revenue in 18 months with no increase in hours worked."
Floor – Raise your minimum standards.
Drop low-margin jobs, micromanaging clients, and inefficient work.
Focus – Concentrate only on what moves the needle.
Streamline services, systematize operations, and build repeatable job types.
Practical steps:
Frame your bold goal (e.g., $10M in 12 months with same management team).
Raise your floor by defining what you'll stop doing.
Focus your business model on scalable systems and repeatable services.
Measure progress with metrics: revenue per crew, margin per job, management hours per project.
Common Pitfalls & How to Avoid Them
Growing volume without improving margins.
Keeping too many service lines ("complexity kills scale").
Hiring hands, not aligned talent.
Setting long timelines that create no urgency.
Fix: Commit to impossible goals, simplify, and raise your floor now.
Scaling isn't just about strategy — it's about who you become.
"You don't scale your business until you scale you."
Shift your identity from builder to leader. Your mindset and standards directly shape your numbers.
Key Takeaways
- Set a goal so big it forces transformation. - Drop what doesn't scale. - Align your systems, team, and services with that vision. - Measure results relentlessly. - Evolve your identity — from on-site operator to business leader.
🔗 Connect with Me
🌐 accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 9 - New IRS Penalty Abatement Rules
New IRS Penalty Abatement Rules Every Contractor Needs to Know
If you own a construction business and got hit with IRS penalties — don't panic. The IRS does offer relief, but the rules on penalty abatements have recently changed.
In this video, I'll walk you through: 1. What penalty abatement is (and when you can use it) 2. How the First-Time Abatement works for both business and individual filings 3. The new IRS criteria that decide whether your request is approved or denied 5. Common pitfalls that cause contractors to lose their abatement request 6. Step-by-step guidance on how to request penalty relief the right way
Key Things
You can usually qualify for one First-Time Abatement every 3 years for each entity (business + individual).
The IRS now rejects penalty relief requests based solely on CPA error or "I didn't know" excuses.
Valid reasons include illness, disasters, missing records, or situations beyond your control.
Always make sure you're current on filings and payments before requesting abatement.
The relief isn't automatic — you must formally request it (often by phone or via Form 843).
⚒️ Resources Mentioned
IRS: Administrative Penalty Relief
IRS: Reasonable Cause Relief Guidelines
Form 843 – Claim for Refund and Request for Abatement (PDF)
🔗 Connect with Me
🌐 accountingsolutionsllp.com 📧 george@accountingsolutionsllp.com 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/
Book a Strategy Call: https://accountingsolutionsllp.com/appointment/
Episode 8 - Hire Your Kids
📘 Show Notes: How Hiring Your Kids Can Save You BIG on Taxes 👨👩👧👦💸
If you're a construction business owner or self-employed, you could be missing out on one of the most powerful, legal tax-saving strategies available — hiring your kids!
In this episode, CPA George Ghazarian breaks down exactly how to hire your children the right way to keep more money in your family and less in Uncle Sam's pocket.
💡 What You'll Learn
✅ How to legally hire your kids under 18 — and pay no FICA or unemployment taxes ✅ Why your kids pay zero federal income tax on reasonable wages ✅ How to deduct their wages on your Schedule C to reduce your business income and self-employment tax ✅ Real-world example: Hire 3 kids, save over $18,000 in taxes ✅ The right way to document, pay, and report wages to stay IRS-compliant ✅ Common mistakes to avoid so you don't get flagged for audit
🧮 Example in Action
Hire 3 kids at $15,750 each = $47,250 total deduction At a 38% combined tax rate → Over $18,000 in tax savings! Your kids pay $0 in federal income tax. 💰 You save thousands, they learn financial responsibility — and the family keeps the wealth in-house.
⚠️ IRS Compliance Tips
✔️ Your kids must perform real, age-appropriate work ✔️ Keep time sheets, job descriptions, and pay records ✔️ Pay reasonable wages and issue W-2s ✔️ Works best for sole proprietorships or husband-wife partnerships
(S Corps and C Corps can still do this — but FICA applies!)
🏗️ Why Construction Business Owners Love This Strategy
Construction businesses often have plenty of legitimate jobs for kids — cleaning the shop, helping with marketing, managing social media, organizing tools, or assisting with bookkeeping. This is hands-on financial education that pays dividends for generations.
👨👩👧👦 Smart Ways for Your Kids to Use Their Earnings
💵 Save for college or a car 💵 Contribute to a Roth IRA (tax-free growth for life!) 💵 Cover personal expenses you'd normally pay for anyway
📞 Need Help Setting This Up?
If you want to make sure this is done right — from payroll to documentation to tax filings — book a consultation with George: https://accountingsolutionsllp.com/appointment/
🔗 Connect with George
🌐 Website: https://accountingsolutionsllp.com/ 💼 LinkedIn: https://www.linkedin.com/in/george-ghazarian-asllp/ 🎥 YouTube: https://www.youtube.com/@concretenumbers
Episode 7 - Tax-Free Medical Expenses
If you own a construction business, there's a legal way to pay for your family's healthcare costs with tax-free dollars — and your business gets the deduction. In this episode, CPA George Ghazarian explains how to use a Health Reimbursement Arrangement (HRA) to turn medical expenses into smart business deductions while saving thousands on taxes.
We'll break down exactly how this strategy works, what the IRS allows, and how to set it up correctly — so you can keep more of what you earn.
Learn how Health Reimbursement Arrangements let your company reimburse medical costs tax-free — and deduct those same costs as a business expense.
What Expenses Qualify From prescriptions to braces to insurance premiums — discover the full list of deductible medical expenses you can legally run through your business.
How Construction Business Owners Can Use It Real-world examples showing how S-corps, LLCs, and even sole proprietors can structure HRAs — including spousal employee setups that work for small contractors.
How to Set It Up (Step-by-Step) Exactly what you need to do:
Write a compliant plan document
Substantiate every expense with proof
Reimburse through payroll or business check
Keep detailed records Get it right, and your HRA becomes an IRS-proof tax-saving machine.
Stop leaving money on the table — contact George Ghazarian, CPA, to set up your own compliant HRA and see how much you could save.
Bonus Resource
https://accountingsolutionsllp.com/hra_template/
Book a Free Strategy Call
https://accountingsolutionsllp.com/appointment/
Episode 6 - Buy or Lease
Pros of Buying
You own the equipment and build long-term equity.
Eligible for major tax deductions via Section 179 and Bonus Depreciation, often allowing a full write-off in year one.
Typically lower total cost over the long run if you keep the equipment.
Full control over use, maintenance, and resale — no mileage or hour limits.
Cons of Buying
High upfront cost or large down payment impacts cash flow.
You're responsible for repairs, maintenance, and downtime.
Depreciation risk — the asset loses value over time.
Can strain working capital if your business is growing fast.
Pros of Leasing
Low upfront cost — often just first month's payment and small deposit.
Predictable monthly expenses make budgeting easier.
Fully deductible lease payments — simple tax reporting, no depreciation schedules.
Flexibility to upgrade or return equipment as your business needs change.
Cons of Leasing
You don't build equity — no ownership at the end unless you buy it out.
Higher total cost over time compared to buying outright.
Possible buyout fees or limits on usage, wear, and customization.
You may end up paying for an asset you never truly own.
Tax Comparison: Buying vs. Leasing
Bonus: https://accountingsolutionsllp.com/buy-vs-lease/
Book a time: https://accountingsolutionsllp.com/appointment/
Episode 5 - Freelance Worker Protection Act
FWPA Quick Facts
Effective Date: January 1, 2025
Applies to: Professional freelancers (bookkeepers, designers, consultants, marketers, etc.)
Does NOT apply to: Licensed trades or construction subcontractors
Written Contract Required: When total payment is $250 or more within 120 days
Required Contract Details:
Names and addresses of both parties
Itemized list of services, rate, and payment calculation
Payment due date or method for determining it
Freelancer's invoice submission deadline
Recordkeeping: Must retain contracts for 4 years
Payment Deadline: By due date or within 30 days of completion if none is stated
Penalties for Non-Compliance
How Contractors Can Stay Compliant
Identify freelancers providing professional services (not trades).
Create a standard FWPA contract template with all required details.
Keep copies for 4 years.
Review payment processes — ensure timely payment.
Integrate these steps into your freelancer onboarding process.
Subcontractors are exempt. Continue using your normal construction agreements.
Key Takeaways
Applies to freelancers, not construction subs
Written contracts required for jobs over $250
Must pay on time — no handshake deals
No change to AB 5 employee classification rules
Episode 4 - New Depreciation Rules
100% Bonus Depreciation is permanent for qualifying property placed in service after Jan 19, 2025
New QPP category allows immediate write-offs for production-based real property (like fabrication shops or asphalt plants)
Key Deadlines: • General assets → In service by Jan 1, 2030 • Long-production assets → Jan 1, 2031 • Agricultural → Plants/trees by Jan 1, 2030
Cost Segregation = Faster deductions + Bigger tax savings
Strategic Planning Tip: Buy or build after 1/19/25 for full expensing benefits
Examples
Buy a $400,000 excavator → Immediate $400K deduction (2026 example)
Build a $2M fabrication facility → 100% first-year write-off under QPP rules
Episode 3 - Converting Personal Vehicle to Business Use
-Does not require new capital outlay
-Example: John bought a car for $80k in 2022, in 2025 his car is worth $40k and he uses it 70% for business use. Therefore, he can use $28k as his basis to depreciate in the business (tax advantage amount)
-Documentation is key: milage logs!
-2 Types of Depcreciation to accelerate: 1) Sec 179 and 2) Bonus
-Only bonus is available for used vehicles
-If >6k lb vehicle then can take 100% bonus
-If <6k lb, subject to limits: $20.k first year, $19,6k 2nd year, $11.8k 3rd year and $7,060 every year thereafter until fully depreciated
-Vehicle must be financed or paid in cash to depreciate
-If leased it you can only take as an expense the amount of lease payment you make monthly
Upon sale:
-Loss = Sals Proceeds – Adj Bsis (i.. FV at conversion – Depreciation)
-Gain = Sales Proeceeds – Original cost less post-conversion depreciation
-Not necessarily required to transfer title and insurance, but need to have your business use documentation straight
If you have any questions, please feel free to book a time: https://accountingsolutionsllp.com/appointment/
Episode 2 - Digitizing Tax Receipts
-Retaining support makes all the difference
-Under $75 is below IRS de minimis
-Each receipt should contain
1. Date
2. Amount
3. Place
4. Business purpose
5. Business relationship
-Best Practice: Picture the Receipt! Forget all the apps.
-If you can't prove it, you lose it
-Cohan rule, IRS may allow if:
1. Expense is legitimate
2. There is a reasonable basis to the estimate
3. Made a good-faith effort to substantiate
-Cohan rule does not apply to travel, meals, entertainment and gifts. Those require logs
-Also at that point you face significant reversals
Can do:
Gather supporting evidence to extent you are able
Write contemporaneous log
Ask vendors for receipts, if they are able/willing to provide
Show consistency
Can't do:
Make up receipts, that would be tax fraud.
https://accountingsolutionsllp.com/appointment/
Episode 1 - New 1099-NEC Rules
-Effective 1/1/2026, the new threshold for 1099-NEC issuance is $2k (threshold increased from $600)
-Gather W9 –
1. if they are an S-Corp or C-Corp, no need to issue 1099-NEC.
2. If they are a sole proprietor, single-member LLC, multi-member LLC or partnership, you would potentially issue them a 1099-NEC.
-If you pay vendor/sub through a payment processor, you do not issue a 1099, as the payment processor (like Stripe, Square, Paypal) will issue them a 1099-K
-If you paid by cash, zelle, ACH, check, Venmo, you will need to issue 1099-NEC for those amounts potentially
-Penalties for failure to file can be as high as $660/1099-NEC for 2025
Building Success This Season: Merry Christmas and Happy Holidays 🎄🎁
-Effective 1/1/2026, the new threshold for 1099-NEC issuance is $2k (threshold increased from $600)
-Gather W9 –
1. if they are an S-Corp or C-Corp, no need to issue 1099-NEC.
2. If they are a sole proprietor, single-member LLC, multi-member LLC or partnership, you would potentially issue them a 1099-NEC.
-If you pay vendor/sub through a payment processor, you do not issue a 1099, as the payment processor (like Stripe, Square, Paypal) will issue them a 1099-K
-If you paid by cash, zelle, ACH, check, Venmo, you will need to issue 1099-NEC for those amounts potentially
-Penalties for failure to file can be as high as $660/1099-NEC for 2025